May 2, 2022

Markets:

U.S. stock index futures were little changed on Monday morning after the Nasdaq Composite Index posted its worst month since 2008, pressured by rising rates, rampant inflation and underwhelming earnings from some of the largest technology companies.

The major averages sank on Friday, accelerating April’s losses. The Dow dropped 939 points during the session, bringing its loss last week to roughly 2.5%. It was the 30-stock benchmark’s fifth-straight negative week.

The Dow and S&P 500 are coming off their worst month since March 2020, when the pandemic took hold. The Dow finished April 4.9% lower, while the S&P tanked 8.8%.

Investors are looking ahead to Wednesday, when the Federal Open Market Committee will issue a statement on monetary policy. The decision will be released at 2 p.m. ET, with Federal Reserve Chairman Jerome Powell holding a press conference at 2:30 p.m.

Another key economic indicator will come Friday when April’s jobs report is released.

Earnings season is now more than halfway finished, but a number of companies are set to post results in the coming week, including a host of consumer-focused restaurant and travel companies. Expedia, MGM Resorts, Pfizer, Airbnb, Starbucks, Lyft, Marriott, Yum Brands, Uber eBay and TripAdvisor are just some of the names on deck.

Portfolio:

We enter the new trading session holding positions in LIACF, QID, AR, and holding ITRM. We will be looking to add this week new opportunities. We can easily see a bottom forming; however, we can easily see the argument for 3800 on the S&P based on technicals. No reason to be first, allow the market to set the price activity and no reason to fight it. This week's it's all about the Fed. It's eerily similar to last Fed event, big selling into it and then people buying the event. We will continue to pinpoint opportunity. Stay patient. Cannot stress enough this price activity within the market will be changing soon and changing when the least folks expect it. That is when the real opportunity comes and what we continue to patiently wait for! Let's have a strong month, a strong week, and a great session!